Profitability analysis of paddy production in different seasons ...

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Profitability analysis of paddy production in different seasons in Bangladesh:

Insights from the Haor

Md Shajedur Rahaman1,* Md Abdur Rouf Sarkar1

Mohammad Chhiddikur Rahman1 Limon Deb1 Md Mamunur Rashid2

Md Salim Reza3 Md Abu Bakr Siddique1

1Bangladesh Rice Research Institute, Agricultural Economics Division, Gazipur-1701, Bangladesh 2Bangladesh Rice Research Institute, Farm Management Division, Gazipur-1701, Bangladesh

3Bangladesh Agricultural University, Department of Agricultural Economics, Mymensingh-2202, Bangladesh

*Corresponding Author: [email protected]

Citation

Rahaman, M.S., Sarkar, M.A.R., Rahman,

M.C., Deb, L., Rashid, M.M., Reza, M.S.,

Siddique, M.A.B. (2022). Profitability

analysis of paddy production in different

seasons in Bangladesh: Insights from the

Haor. International Journal of Agriculture,

Environment and Food Sciences, 6 (3), 327-

339.

Doi: https://doi.org/10.31015/jaefs.2022.3.1

Received: 14 July 2020

Accepted: 30 June 2022

Published Online: 19 July 2022

Year: 2022

Volume: 6

Issue: 3 (September)

Pages: 327-339

This article is an open access article

distributed under the terms and conditions

of the Creative Commons Attribution (CC

BY-NC) license

https://creativecommons.org/licenses/by-

nc/4.0/

Copyright © 2022

International Journal of Agriculture,

Environment and Food Sciences; Edit

Publishing, Diyarbakır, Türkiye.

Available online

http://www.jaefs.com

https://dergipark.org.tr/jaefs

Abstract

This study aimed to investigate the cost-benefit per hectare of rice production in

the haor region in Bangladesh. For doing so, the multi-stage sampling technique

was used to collect cross-sectional data during 2018 from four haor districts

producing rice in Bangladesh. To achieve the purpose, a total of 368 randomly

selected farming households from Habiganj, Sunamganj, Moulvibazar, and Sylhet

districts were surveyed using a structured questionnaire. Data analysis was done

utilizing descriptive statistics and cost and return analysis. The result revealed that labor costs constituted the largest proportion of gross operating expenses, followed

by fertilizer, irrigation, tillage, insecticides and herbicides, and threshing cost. The

cost-benefit analysis finding also shows that rice is a profitable enterprise in the

haor areas as the lower production cost compared to return. Because of the amount

of input used and the price of output, the profitability differs between different

seasons, however. The model shows that cost of seed, human labor cost, cost of

TSP, cost of MoP, and cost of irrigation were the key factors that influenced rice

production. This study also identified some of the problems related to rice

production in haor areas. Lower output price, higher input price, unavailability of

short growth duration high yielding varieties, and embankment damages, etc., are

key obstacles to rice production. Therefore, this study provides the government's

concerned authority with appropriate suggestions and policy recommendations to

solve the farmers' issues that could boost rice productivity in the haor areas and

contribute to food security and self-sufficiency in rice cultivation.

Keywords

Rice, Productivity, Profitability, Haor, Bangladesh

Introduction

Bangladesh is a densely-populated, low-lying,

mainly riverine country located in South Asia (Islam et

al., 2020; Rahman et al., 2021). Bangladesh's economy

relies mostly on agriculture, which is undergoing a

steady transition from traditional to modern. (Rahaman

et al., 2021; Sarker et al., 2019) . Within the context of

this development process, Bangladesh's agricultural

industry is of critical significance. (Hoq et al., 2021;

Sarkar et al., 2022). Agriculture is the single largest

producing sector of the economy since it comprises

about 14.23 percent of the country's GDP and employs

around 40.06 percent of the total labor force (BER,

2018; LFS, 2018). Where paddy production dominates

by covering 11.97 million hectares of land, which is

about 74.85 percent of the total cropped area and more

than 65 percent of the irrigated area of the country, and

stands third among the rice producing countries (BBS,

2018; MoA, 2019; Rahman et al., 2021). Rice is the

main dietary staple for 164.6 million people and

provides about 55% and 75% of total protein and

calories in the daily human diet, respectively (BBS,

2018; Kabir et al., 2003).

Research Article Int J Agric Environ Food Sci 6 (3): 327-339 (2022)

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Md S. Rahaman, Md A.R. Sarkar, M. C. Rahman, L. Deb et al. Int J Agric Environ Food Sci 6 (3): 327-339 (2022)

Almost all over the country, rice is produceding

three seasons (Rahaman et al., 2020; Mondal et al.,

2019). Kharif-I (mid-March to mid-July), Kharif-II

(mid-July to mid-October), and Rabi (mid-October to

mid-March) are the three rice growing seasons (Hoq et

al., 2021). Between the dry and wet seasons, Kharif-I

(early monsoon) serves as a transitional time, whereas

Rabi and Kharif-II are the wet and dry seasons,

respectively (Chowdhury and Hassan, 2013; Alamgir et

al., 2020). Growing seasons for rice were Aus, Aman,

and Boro, which correspond to Kharif-I, Kharif-II, and

Kharif-III, respectively (Talukder and Chile, 2014).

Being a vital source of rice production, haor areas play

a significant role in the economy of Bangladesh

(Rahaman, et al. 2018). Haor areas covered about 0.71

million hectares of net cultivable land, of which more

than 5.25 million tons of paddy each year has been

produced (BHWDB, 2012). Territorially, many haors

are situated in Bangladesh's North-eastern portion

(Alam et al., 2010; Hoq et al., 2021; Rahaman et al.,

2018). Haor is now being used to indicate a unique

geographical site of Bangladesh that added a splendid

diversity to the country's nature, which is flood-prone

and other low lying areas that remain inundated with

water from June to November. About 859,000 ha

(around 43%) of the total area of the haor region is

covered by the number of 373 haors. Out of these, In

Sunamganj district surrounded by 95 haors of which

about 70% area has now been turned into cultivated land

(BHWDB, 2012).

In haor areas, a major portion of their cultivable land

is low land. Bangladesh's most flood-prone regions are

the low-lying haor regions, which experience floods due

to erratic rainfall during the rainy. As a result during

Kharif –1 (Aus) and Kharif –2 (Aman) lands became

fallow due to inundate on floodwater. In the haor area

Boro is the main crop and is frequently affected by flash

flood (Hoq et al., 2021; Ali and Rahman, 2017). Among

the different cropping patterns, Boro-fallow-fallow

(39.64%), Boro-fallow-T. Aman (15.74%), fallow-

fallow- T. Aman (15.29%), and fallow-Aus-T. Aman

(12.62%), were the main and exclusive rice-based

pattern in the haor region (Muttaleb et al., 2017).

In the haor region, rice is the main crop and even the

only crop due to lengthy waterlogging conditions (Alam

et al., 2010; Aziz and Kashem, 2016; Hoq et al., 2021;

Ali and Rahman, 2017). In those areas, rice cultivation

mainly depends on the natural water, although artificial

irrigation is managed in some possible localities. The

production of such areas is confined under the choice of

nature. Sometimes the ripened rice is damaged by the

uncertain floodwater in the shallow areas. Despite

growing just Boro rice as a single crop and the

recurrence of advanced flash floods, the area alone

provides a living for twenty million haor residents and

generates around 20% of the nation's total rice

production (Rabby et al., 2011). According to Huda

(2004), boro rice covers about 80% of these haor

regions, whereas T. Aman rice occupies just around

10% of the total area. Additionally, the haor zones also

cultivate hybrid rice (Das, 2004). Compared to the rest

of the country's irrigated regions, the haor zones are far

more natural hazardous. Increasing global warming has

made the haors more aggressive in their refusal to

provide a safe harvest. During the early reproductive

stage of the crop, cold injury, flash flood damage, etc.,

are all common occurrences in the haor region's rice

farming. Besides, floods, cyclones and storm surges,

hailstorms, drought, tornados, riverbank erosion, and

landslide are the main impediments to growing paddy in

this area (Alam et al., 2010).

Several studies have been undertaken in the hoar

regions to determine the socio-economic repercussions

of the disaster, sanitation patterns, flood risk, cropping

patterns, etc. (Antwi et al., 2015). An empirical finding

reveal that flash floods adversely impact the majority of

the haor population, whose rural families rely on

agriculture and aquaculture for their livelihoods, and

many of them are vulnerable to food insecurity (Shaw

2006; Rahman et al. 2015; FAO 2017). Both Rahman et

al. (2018a) and Rahman et al. (2018b) analyzed the

floodplain haor area's susceptibility to climatic

pressures and policies on climate adaptation,

respectively. Research by Rahman and Hickey (2019a)

sought to discover sustainable rural livelihood

frameworks as well as institutional solutions to climate

change by Rahman and Hickey (2019b). Alam, et al.

(2010) stated that the major hinders to the adoption of

potent cropping patterns were embankment damages

and scarcity of shorter growth duration high yielding

varieties. While Ali et al. (2019) attempt to show the

Boro rice cultivation and agro-economic performance in

the haor area. He found that the productivity of Boro

rice is low due to the imbalance use of fertilizers.

Rahaman et al. (2018) evaluate the productivity,

profitability, resource use efficiency, and farmers’

perception of growing BRRI dhan29 and hybrid rice

production in the haor area. The study revealed that per

hectare variable cost of the hybrid was about 12% higher

than BRRI dhan29, where the yield of BRRI dhan29 was

about 12% lower than hybrid rice.

As a result, efforts have been made to investigate the

economic analysis of paddy output throughout the

various seasons in the haor area. This is because

developing a rice pricing strategy for this region is

extremely necessary. The cultivation of rice necessitates

a variety of processes, including the preparation of the

land, planting of seedlings, weeding, application of

fertilizer and insecticides, irrigation, harvesting,

carrying, threshing, and winnowing of the grain, and the

drying of the finished product. Rice production thus

requires a significant financial investment on the part of

farmers. That's why we carried out this research: we

wanted to have a better grasp on the economics of rice

farming in the haor regions at various times of the year.

This research can potentially educate farmers about the

primary expenses associated with rice cultivation,

assisting them in being more productive and thereby

increasing their revenue. In light of this, the overall

purpose of this research was to investigate the

relationship between farmer income and expenditure

and to compare the costs and benefits of producing rice

in various seasons in Bangladesh. The specific

objectives of the study were as follows: i) to evaluate the

adoption situation of modern and local rice varieties; (ii)

to determine the level of inputs used and estimate the

cost and profitability of rice cultivation in different

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Md S. Rahaman, Md A.R. Sarkar, M. C. Rahman, L. Deb et al. Int J Agric Environ Food Sci 6 (3): 327-339 (2022)

seasons; and (iii) to identify the factors that contribute

to rice production.

Methodology

Study area

The research regions were deliberately chosen to be

the Habiganj, Sunamganj, Maulavibazar, and Sylhet

districts in consideration of the study's goals. A total of

eight Upazila (Tahirpur, Bishwambarpur, Chunarughat,

Baniachang, Maulvibazar Sadar, Srimangal, South

Surma and Golapganj) were also selected purposively

from four districts (Figure 1). The study sampled a total

of sixteen villages, of which two from every Upazila for

the farm-level survey.

In the north-eastern section of Bangladesh, the

Sylhet agricultural area has the finest blend of haor,

bawor, bills, hills, rivers, forests, and flatlands. It is

located within the eastern Surma-kusiyara floodplain,

the Sylhet basin, the northern and eastern piedmont

plain, the northern and eastern hills, the former Meghna

estuary floodplain, and the Akhaura terrace agro-

ecological zone (BBS, 2018). This region has 0.77

million hectares of net cultivable land, with 0.21, 0.13,

0.18, and 0.28 million hectares of net cultivable land,

respectively, in the districts of Sylhet, Moulvibazar,

Habiganj, and Sunamganj (BBS, 2018 and Muttaleb et

al., 2017). About 0.43 million hectares of the region are

cultivated with only one crop, 0.28 million hectares with

two crops, and 0.04 million hectares with three crops. At

the moment, Bangladesh's cropping intensity is 200

percent, while in the Sylhet area, it is just 148 percent

(Muttaleb et al., 2017).

Sample distribution

A total of 368 sample farmers were interviewed, of

which 80, 128, and 160 were of Aus, Aman, and Boro,

respectively. The sample farmers were chosen using a

straightforward random sampling technique. Five Aus

farmers, eight Aman farmers, and ten Boro farmers were

randomly selected from each village on average to

gather the essential data for the research

Data

The farmers were surveyed in April-June 2018 with

a structured questionnaire. The questionnaire was

designed to collect farmers’ income, expenditure, and

the net profit of rice production in a different seasons.

Data was also collected on the farmer’s socio-economic

information, farm characteristics, and rice production.

These included information on age, household

members, household labor, farming experience, farm

size, and the detail of growing rice varieties. The pre-

test was conducted ahead of data collection to review the

questionnaire before conducting the main survey.

Season considered

Bangladesh has three different seasons: Aus, Aman,

and Boro (BBS, 2018; Hoq et al., 2021). This research

included all three seasons since rice is grown year-round

in haor regions. For Aman season, we evaluated both

broadcast Aman, which grows in low-lying sections of

haor known as deepwater rice, and transplanted Aman,

which grows on medium-height land. In addition, two

cultivation settings are considered for the Boro season:

one is grown in deep haor, or low-lying ground and the

other is planted in medium-high land.

Figure 1. Study area

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Analytical techniques

Description and mathematical analysis were

employed to analyze the collected data. Descriptive

statistics such as minimum, maximum, mean, and

percentages analysis were employed to represent the

socio-economic characteristics of the surveyed

respondents.

Mathematical analysis

The profit function was employed in the case of the

mathematical analysis. These include gross return, gross

margin, net return, and benefit-cost ratio (BCR).

Gross return: Gross return was calculated by

simply multiplying the total volume of output of rice

with per unit price received by the farmers. It consisted

of the sum of the volume of the main product and its by-

product (Dillon and Hardaker, 1993).

Gross Return = Σ (Q x P)

Where Q = Output quantity; and P = Output price.

Gross margin: It is the difference between total

return and variable cost.

Gross Margin = Gross return − Total variable cost

Net return:Net return was obtained by deducting all

costs (variable and fixed) from gross return. ,

Net return, π =Σ PyQy – Σ (Pxi Xi) – TFC.

Where, Py = Per unit price-output; Qy = Total

quantity output; Pxi = Per unit price of i-th inputs;

Xi = Quantity of the i-th inputs; TFC = Total fixed

cost (Tk); and i = 1, 2, 3,..............., n ( number of inputs).

Benefit-cost ratio (BCR): The BCR is a relative

measure, used to compare benefit per cost unit. The

BCR estimated gross returns and gross costs as a ratio.

The formula (undiscounted) for measuring BCR is

shown below:

Benefit-cost ratio = Gross benefit ÷ Gross cost

Empirical Technique

The functional analysis was conducted to identify

the key inputs which influenced the sampled rice

farmers' production process. Cobb-Douglas production

function model was used to evaluate the factor

responsible. It is a conventional model where output

volume is dependent on the degree of input utilization.

Model specifications are as follows:

𝑌 = 𝑎𝑋𝑖𝑏𝑖 + 𝑒𝑢𝑖 (1)

Equation ( 1) is an equation not in linear form. A

natural logarithm is used on both sides as follows, to

make it linear:

ln 𝑌 = 𝑙𝑛𝑎 + 𝑏𝑖𝑋𝑖 + 𝑢𝑖 (2)

Where Y= Total production (t/ha),

𝑋𝑖= different variables susch as seed cost (Tk/ha);

human labor cost (Tk/ha); land preparation cost (Tk/ha);

Urea cost (Tk/ha); TSP cost (Tk/ha); MoP use (Tk/ha);

Irrigation cost (Tk/ha); Manure cost (Tk/ha); Insecticide

cost (Tk/ha); a = Constant or intercept term; bi =

Coefficients to be estimataed for the corresponding

input variables; and ui = Error term.

Results and Discussion

Socio-demographic profile of the sample farmers

Table 1 summarizes the socio-economic and

demographic profiles of the respondent farmers. The

socio-economic characteristics of rice farmers affect

their farming operations either directly or indirectly

(Bwala and John, 2018). The majority (58 percent) of

farmers belonged to the active age group (between 31

and 50). As for schooling, over 90 percent of the heads

of households in the surveyed region were educated;

among them, 48 percent of the respondent's education

level was secondary. Approximately all the households

in the survey were male-headed with an average family

size of 4.9, 49 percent of which were male. The sample

farmers' average farm size was 1.95 acres, and the

majority of farmers were small-scale farmers, around 71

percent. The sample households had a relatively long

experience in rice farming, and the farmers had an

average of 25 years of rice production experience; and

agriculture was the primary source of livelihood in the

haor region around 81 percent of farmhouses. The haor

farmers mostly adopted high-yielding modern rice

varieties, of which 97.49, 79.69, and 96.63 percent of

HYV were adopted in the Aus, Aman, and Boro seasons,

respectively.

Table 1. Socio-economic features of sample respondents of the study area

Characteristics Unit

Age (%):

20-30 years 23

31-50 years 58

51-above years 19

Education (%):

Illiterate (0) 10

Primary (I-V) 30

Secondary 48

Higher secondary 11

Graduate and Above 1

Family size (no./household): 4.9

Male 2.4

Female 2.5

Average Farm size (acre) 1.95

Farm classification (%):

Small 71

Medium 25

Large 4

Farming experiences (%):

0-10 years 15

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11-20 years 27

21-40 years 45

Above 41 years 13

Occupation (%):

Agriculture 81

Petty business 11

Fishing 4

Service 1

Others 3

Modern variety adoption (%):

Aus season 97.49

Aman season 79.69

Boro season 96.63

Source: Field survey, 2018

Status of rice cultivation

Sylhet region has diversified cropping patterns, of

which rice-based were exclusive. Among the cropping

patterns, Boro-fallow-fallow, Boro-fallow-T. Aman,

and fallow-Aus-T. Aman was the most popular. In the

fiscal year 2017-18, about 0.77 million hectares of land

was under rice cultivation and produced 2.05 million ton

of rice in the Sylhet region (BBS, 2018). Figure 2 shows

the adoption percentage of a variety of types cultivated

by farmers in the study area. Results show that farmers

mostly adopted modern improved varieties in the

surveyed area, among which BRRI varieties adopted

more in three seasons. Farmers mostly adopted modern

varieties in the Aus season. Among the adopted varieties

BRRI dhan48, BRRI dhan28, BR26, and BR3 were

popular with the farmers. On the other hand, BRRI

dhan49, BR11, BR22, BRRI dhan32, BRRI dhan46,

BRRI dhan51, and BRRI dhan53 varieties were popular

in the Aman season. While for B. Aman, farmers

generally cultivate local varieties, namely Godalaki,

Dudhlaki, etc. Furthermore, in the Boro season, farmers

also adopted modern varieties. BRRI dhan28, BRRI

dhan29, BRRI dhan58, and hybrid varieties were the

most dominant varieties in this region.

Figure 1. Types of varieties adopted by farmers in the study area

Paddy production practice

Table 2 shows the period rice was sown,

transplanted, and harvested in various seasons. In the

management practices, farmers in the Sylhet region sow

seeds on May 6-13, July 8-15, May14-31, December 7-

15 and November 4-15 for Aus, Transplanted Aman,

Broadcast Aman (deepwater rice), Boro (medium high

land), and Boro (cultivated in the main haor),

respectively. Therefore, on May 26-30, August 15-30,

January 24- February 5 and December 15-31, they

transplanted seedlings for Aus, T. Aman, Boro (medium

high land), and Boro (cultivated in the main haor),

respectively. Farmers of this region use almost all types

of fertilizer recommended for their cultivation. The

application of phosphate fertilizer was higher, and MoP

was much lower than the recommendation in all seasons

as well. Farmers usually apply nitrogen fertilizer 2-3

times in the fields and irrigate the main field about three-

four times a month. For weeding, farmers hired labor at

least one-two time and also used herbicides and

insecticides in their fields. Finally, on August 1-15,

November 29-December 15, November 15-30, April

28–May 21 and April 11-May 3, farmers harvested their

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Aus, T. Aman, B. Aman (deepwater rice), Boro (medium

high land), and Boro (cultivated in the main haor) crops,

respectively (Table 2).

Table 2. Sowing, transplanting, and harvesting date of rice cultivation in different seasons

Items Sowing Date Transplanting Date Harvesting Date

Aus May 6-13 May 26-30 August 1-15

T. Aman July 8-15 August 15-30 November 29-December 15

B. Aman (deepwater rice) May14-31 - November 15-30

Boro (medium high land) December 7-15 January 24-February 5 April 28 –May 21

Boro(cultivated in the main haor) November 4-15 December 15-31 April 11-May 3

Source: Field survey, 2018

Inputs use pattern

Table 3 represents hectare-wise input used in the

study region across various seasons. In the Sylhet

region, farmers regularly hired labor on a contractual

basis for the three major labor-intensive intercultural

operations such as transplanting, harvesting, and

carrying. In contrast, land preparation, weeding,

fertilizer and insecticides application, and post-harvest

processing ere done by hiring labor daily. Besides, most

farmers in the Aman season rely on the combined

harvester and power thresher for harvesting and

threshing rice on a custom-hired basis. As a result, the

highest number of human labor (135 man-days/ha) was

used for Boro (cultivated in the main haor) cultivation

followed by Boro (medium high land) (95 man-

days/ha), Aus (81 man-days/ha), T. Aman (76 man-

days/ha) and B. Aman (deepwater rice) (35 man-

days/ha). The seed rates for Aus, T. Aman, B. Aman

(deepwater rice), Boro (medium-high land) and Boro

(cultivated in the main haor) were 41,44, 88, 34 and 35

kg/ha, respectively, indicating farmers used a

substantially higher amount of seed than BRRI

recommended rate (25 to 30 kg/ha). Farmers who

cultivate rice in the deepwater ecosystem use higher

seeds than in other environments. It may be because of

a higher risk of damage to seeds in the seedbed and

seedlings in the main field due to inundation. Except for

B. Aman (deepwater rice) rice cultivation, on average,

urea application rate was consistent with BRRI

recommendation. However, the application of

phosphorous fertilizer was considerably higher in all

seasons compared to the BRRI recommendation. The

rate of MoP application was much lower in all seasons

(Table 3).

Table 3. Per hectare input use pattern in different seasons

Input item Aus T. Aman B. Aman

(deepwater

rice)

Boro

(medium

high land)

Boro (cultivated

in the main

haor)

Human labour (man-day/ha): 81 76 35 95 135

Hired 54 55 33 73 110

Family 27 21 2 22 25

Seed (kg/ha) 41 44 88 34 35

Fertilizer (kg/ha):

Urea 137 171 44 205 132

MoP 69 69 - 34 44

DAP 89 96 - 103 88

Gypsum 34 47 - 34 18

ZnSO4 7 7 - - -

MgSO4 3 - - - -

Source: Field survey, 2018

Cultivation costs

Table 4 exhibits the per hectare cost of rice

cultivation in different seasons in the haor area. Human

labor is the most significant and most extensively used

component for rice production. Per hectare, human labor

costs were Tk. 44,866, Tk. 43,581, TK. 11,460, TK.

47,765 and Tk. 63,266 for Aus, T. Aman, B. Aman

(deepwater rice), Boro (medium high land), and Boro

(cultivated in the main haor) rice cultivation,

respectively, which is 44.28 %, 39.57 %, 44.47%, 35.63

% and 48.59 % of the total cost of rice production in a

different season, respectively (Figure 3). The result

shows that per hectare Boro (cultivated in the main

haor) rice cultivation required the highest labor cost.

Because in the deep haor land covered with water

hyacinth which required more labor for cleaning to

prepare the land for rice cultivation. On the other hand,

for broadcast, Aman incurred lower labor costs because

right after Boro harvesting, farmers sow seeds directly,

which also does not require land clearing, transplanting,

weeding, and insecticides application.

Fertilizer cost was higher in Boro (medium-high

land) season (Tk. 13,882/ha) followed by T. Aman (Tk

7,475/ha), Aus (Tk 7,042/ha), Boro (cultivated in the

main haor) (Tk 5,332/ha) and B. Aman (deepwater rice)

(Tk 792/ha). Results show that farmers usually applied

all types of fertilizers on their land except in Boro

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season; on the regular land conditions, farmers applied

manure, and in broadcast Aman, farmers only used urea

fertilizer for crop cultivation. As a result, in Boro

(medium high land), farmers incurred the highest

fertilizer cost and broadcast Aman incurred the lower

cost. Furthermore, farmers of the haor area do not apply

balance doses of fertilizers. Ali, et al. (2018) also

reported the same results. The reason behind this was

inadequate knowledge of balanced fertilizers. The

farmers in the haor areas do not use organic matter in

rice fields. Survey results showed that the farmers

applied manure only in Boro rice cultivation. A similar

result was observed by Ahmed (1987) and Jahiruddin et

al. (2009). Seed cost was higher for B. Aman (Tk.

3,520/ha) as it required direct seeding and a higher risk

of damage to seedlings in the main field due to

inundation. At the same time, seedling development

costs for all seasons are nearly the same.

Irrigation cost was much higher, which is 10% of the

total cost (Tk. 11,226/ha) for Boro (medium-high land)

rice cultivation, than that of Boro (cultivated in the main

haor) (Tk. 6,736/ha). On the other hand, Aus, T. Aman,

and B. Aman cultivated in rainfed conditions. Farmers

usually applied insecticides and herbicides for rice

cultivation except in B. Aman. Because in this region, B.

Aman is cultivated in low-lying lands that are inundated

with water at the time of insecticides and herbicides

application. Per hectare of insecticides and herbicides,

the cost was highest in T. Aman (Tk. 3,154). Power-

operated thresher machine is usually used for rice

threshing in the study area. The cost of the threshing was

Tk. 3375/ha, Tk.3000/ha, and Tk.2625/ha for both Boro,

T. Aman, and Aus, respectively. Per hectare total

variable cost of Boro (cultivated in the main haor) and

Boro (medium high land), rice cultivation was higher in

this region due to higher uses of human labor and

irrigation cost.

Fixed costs do not vary with the amount of output

produced (Wang 2001). The family labor, interest on

operation capital, and land rental cost were considered

fixed costs in this study. Farmers in the study area

generally use family labor for land preparation, applying

fertilizers and insecticides, monitoring irrigation,

winnowing, and drying. Table 2 shows the highest

family labor incurred Tk. 8,750/ha in Boro (cultivated in

the main haor) and lowest in B. Aman (Tk. 900/ha).

Interest on operating capital (IOC) was measured from

the total variable expenditure considering the rice-

growing period. For estimation, an interest rate of 10

percent a year was considered.

Table 4. Cost of rice cultivation in different seasons (Tk/.ha)

Items Aus T. Aman B. Aman

(deepwater

rice)

Boro

(medium high

land)

Boro(cultivated in

the main haor)

Variable cost

Seedling development 2,057 2,400

2,050 2,650

Seed 2,150 2,674 3,520 1,700 1,750

Human labor 36,496 36,231 10,560 40,065 54,516

Hired labor (daily wage basis) 16,740 19,250 10,560 25,550 38,500

Hired labor (contract basis) 19,756 16,981

14,515 16,016

Tillage 6,171 7,200 600 5,478 5,292

Fertilizer 7,042 7,475 792 13,882 5,332

Urea 2,194 2,743 792 3,280 2,112

MoP 1,029 1,029

510 660

DAP 2,139 2,304

2,884 2,200

Gypsum 411 576

408 360

ZnSO4 823 823

MgSO4 446

Manure

6,800

Irrigation

11,226 6,736

Herbicide 343 411

524 449

Insecticide 2,057 2,743

2,245 898

Power thresher 2,625 3,000

3,375 3,375

a. Total variable cost 67,311 62,134 15,472 80,545 80,998

Fixed Cost

Family labour 8,370 7,350 900 7,700 8,750

Interest on operating capital

@10% for five months 11,00 1,067 321 1,699 1,741

Land rent 14,000 21,000 7,050 22,500 20,700

b. Total fixed cost 23,470 29,417 8,271 31,899 31,191

c. Total cost (a+b) 82,411 91,551 23,743 1,12,444 1,12,189

Source: Authors calculation

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Md S. Rahaman, Md A.R. Sarkar, M. C. Rahman, L. Deb et al. Int J Agric Environ Food Sci 6 (3): 327-339 (2022)

Figure 3. Representation of inputs in total cost of production in different seasons

The interest represents the total operating expenses

throughout the time because not all expenses were

accrued simultaneously; instead, they were utilized from

start to end during the production period. Interest in

operating cost for Aus, T. Aman, B. Aman, Boro

(medium high land), and Boro (cultivated in the main

haor) rice production was Tk. 1100/ha, Tk. 1067/ha,

Tk. 321/ha, Tk. 1699/ha, and Tk. 1741/ha, respectively.

Land rental cost per hectare varies on its productivity

efficiency and season of paddy cultivation. Per hectare

land rental value is the highest Tk. 22,500 for Boro

(medium-high land) and lowest Tk. 7050 for B. Aman.

Farmers have spent a considerable amount of money

on rice cultivation, especially in the irrigated system,

where production costs were higher than in rain-fed

systems. The result revealed that labor costs constituted

the largest proportion of the overall expense of the

variable cost (Figure 3) . This is accompanied by

fertilizer, irrigation, tillage, insecticides and herbicides,

power threshing, seed, and seed development. This

clearly shows that large amounts of resources are

invested in meeting the labor requirement. This result is

substantiated by the observations made by Islam et al.

(2017), Ali et al. (2019), Bawla & John (2018), and

Duvvuru & Motkuri (2013) that "Rice production is

labor-intensive and in most cases relies on a substantial

usage of paid labor.

Profitability

Per hectare costs and return of rice cultivation in

different seasons are are presented in Table 5. The yield

of Boro (cultivated in the main haor) (6.57 t/ha) was the

highest, followed by Boro (medium high land) (6.10

t/ha), T. Aman (4.80 t/ha), Aus (4.47 t/ha) and B. Aman

(1.45 t/ha). For B. Aman cultivation, farmers usually

used local varieties, which gives a lower yield.

Per hectare gross margin of T. Aman rice (Tk.

42,747) was the highest, followed by Boro (cultivated in

the main haor) (Tk. 40,834), Boro (medium high land)

(Tk. 32,755), Aus rice (Tk. 28,066) and B. Aman

(deepwater rice) (Tk. 10,534) (Table 5). Farmers

obtained higher returns from T. Aman rice due to the

higher market price.

The Benefit-Cost Ratio (BCR) is a measurement tool

to observe the resource use efficiency (Masum et al.,

2018). Table 5 shows that BCR (undiscounted) of T.

Aman rice, Boro (cultivated in the main haor), Aus, Boro

(medium high land), and B. Aman (deepwater rice) were

1.15, 1.10, 1.07, 1.02 and 0.97, respectively. It implies

that Tk. 1.15, Tk. 1.10, Tk. 1.07, Tk. 1.02, and Tk.

0.97 would be earned by investing Tk. 1.0 in producing

T. Aman rice, Boro (cultivated in the main haor), Aus,

Boro (medium high land), and B. Aman (deepwater

rice), respectively.

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Md S. Rahaman, Md A.R. Sarkar, M. C. Rahman, L. Deb et al. Int J Agric Environ Food Sci 6 (3): 327-339 (2022)

Table 5. Per hectare costs and return of rice cultivation in different seasons

Items Aus T. Aman B. Aman

(deepwater rice)

Boro

(medium

high land)

Boro(cultivated in

the main haor)

Total cost (Tk/ha): 82,411 91,551 23,743 112,444 112,189

Total variable cost 58,941 62,134 15,472 80,545 80,998

Total fixed cost 23,470 29,417 8,271 31,899 31,191

Yield (kg/ha) 4,471 4,790 1,460 6,100 6,574

Gross return (Tk/ha): 87,007 104,881 26,006 113,300 121,832

Return from paddy 84,949 99,393 23,360 109,800 118,332

Return from Straw 2,058 5,488 2,646 3,500 3,500

Gross margin (Tk./ha) 28,066 42,747 10,534 32,755 40,834

Net return (Tk./ha) 4,596 13,330 2,263 856 9,643

Unit price of grain (Tk./kg) 19 20.75 16 18 18

Unit cost of production

(Tk./kg)

18.18 18.87 16.26 18.21 16.84

BCR on full cost basis 1.07 1.15 0.97 1.02 1.1

Source: Authors calculation

Therefore, the results indicated that investment in

rice cultivation was profitable in current years. This

finding is consistent with the results of Ali et al. (2019),

and Alam et al. (2010) where they reported a positive

gross margin for rice production in the haor area as total

revenue is much higher than total variable costs. It is

anticipated that the productivity of rice cultivation and

certainly the farmers' profits would improve

dramatically as more land is dedicated to rice

production.

Determinants of the production

The findings are reported in Table 6 on the estimated

Cobb- Douglas production function for rice production.

Total rice output has been used as the dependent’s

variable in this function. The table also presents the rice

production F-value and R2. The estimated model F-

values are 4.33 and significant. It implies that all of the

explanatory variables used in this analysis were

necessary to understand the variations in rice

production. R2 values have been 0.81, indicating that 81

percent of the variation in rice production was explained

by the explanatory variables included in the model.

The outcome revealed that most coefficients had

positive signs. The coefficient of cost of seed, human

labor cost, cost of TSP, cost of MoP, and cost of

irrigation was found to be positive and significant at

different levels. This suggests an increase of 1 percent

in seed costs, human labor costs, TSP costs, MoP costs,

and irrigation costs, while other variables constant will

raise overall output by 0.023, 0.091, 0.151, 0.110, and

0.012 percent, respectively.

Table 6. Estimated coefficients of the Cobb-Douglas production function

Explanatory variables Coefficients Standard error t-value

Constant 5.121*** 1.930 2.65

Seed cost 0.023* 0.011 2.09

Human labor cost 0.091** 0.037 2.43

Land preparation cost 0.192 0.210 0.90

Urea cost 0.032 0.131 0.23

TSP cost 0.151** 0.063 2.39

MoP cost 0.110* 0.060 1.83

Irrigation cost 0.012*** 0.004 3.00

Manure cost 0.019 0.013 1.46

Insecticide cost 0.007 0.023 0.30

F-value 4.322*** 1.597 2.70

R2 0.81

*** = Significant at 1% level; ** = Significant at 5% level; * = Significant at 10% level

Constraints

A few elements commonly militate against crop

development, yet each harvest has exceptional

conditions that antagonistically influence its production.

This could be either physiological, environmental, or the

marketing of the crop (Bwala and John, 2018). During

rice production, farmers in the study region were

confronted with a number of challenges. This section

focuses on the difficulties rice farmers in the research

region encountered when cultivating rice. In haor

region, the vital constraints are unavailability of labour,

lower price of paddy and risk of the flash flood. Almost

100 percent of farmers agreed. The labor crisis becomes

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Md S. Rahaman, Md A.R. Sarkar, M. C. Rahman, L. Deb et al. Int J Agric Environ Food Sci 6 (3): 327-339 (2022)

more pronounced, especially during the rice harvest,

which increases labor costs. On the other hand, farmers

get lower paddy prices during the paddy harvesting

season since they must sell wet paddy at this time.

Because they lack sufficient room to dry the rice.

Furthermore, owing to excessive rains, they cannot dry

the paddy, resulting in decreased paddy prices for

farmers. Every year, there is a possibility of flash floods.

Flash floods have decimated their crops over the years.

As a result, it has been acknowledged as a significant

issue by all farmers. More than 90% of farmers say that

their rice farming is hindered by a shortage of high-

quality modern paddy seeds, high input costs, and a

scarcity of irrigation water. Almost two-thirds of

farmers are concerned about the state of their

transportation system. Due to poor roads, they

frequently have to sell paddy at a lesser price since they

can't get to the market at the right time. A shortage of

appropriate varieties, adulterated fertilizers and

pesticides, difficulty with credit, inadequate knowledge,

and diseases and insect infestations are among the most

pressing issues farmers face when it comes to rice

farming in the area.

Table 7. Constraints of rice cultivation in haor region

Sl. No. Constraints Frequency (n=368) Percentage

1 Lack of suitable rice varieties under changing climatic situation 240 65

2 Lack of availability of improved variety quality seeds 339 92

3 Scarcity of agricultural labor 368 100

4 Lower market price of paddy/rice 368 100

5 High wage rate of labor and irrigation cost 349 95

6 High price of inputs 349 95

7 Lack of irrigation facilities 202 55

8 Adulteration of inputs like fertilizers and pesticides 276 75

9 Early flash flood and lack of water control 368 100

10 Transportation problem 254 69

11 Heavy post harvest loss due to heavy rainfall 258 70

12 Increasing trend of insects and diseases infestation 239 65

13 Lack of agricultural information 166 45

14 Lack of institutional agricultural credit 147 40

Note: Multiple responses considered, Source: Field survey, 2018

Conclusion and recommendations

Rice, being a staple food for almost all of

Bangladesh's population, is essential to agricultural

growth and food security. Every year, the haor area

produces a bountiful crop and contributes considerably

to national rice output. Residents in the haor regions

have several options to enhance their agricultural

techniques and livelihoods.

Rice cultivation in Bangladesh is a lucrative activity;

however, profit rates are slightly lower. The level of

profit is significantly lower. Sampled farmers were

mostly used modern high-yielding varieties for rice

cultivation. For adopting a variety, socio-demographic

influences had a solid and essential effect. They used a

higher amount of seed than the recommended rate. On

average, the farmers’ rate of urea application was

consistent with the recommendation. However, farmers

applied a higher amount of phosphate fertilizer, while

MoP was much lower in all seasons. Even though Boro's

rice yield was higher than Aman however, Boro's net

benefit was lower than Aman. Because Aman growers

received higher net returns due to lower costs of

production and better market prices. Farmers usually

sell their paddy at the market. However, paddy traders

now travel home to purchase paddy directly from

farmers. The challenge of transporting paddy to the

market has thus been solved. As a result, the farmers are

happy at least because they do not have to carry any kind

of trouble. The results of the production determinants

imply that increasing the quantity of seed used, using

more labour, and using more TSP, MoP, and irrigation

will enhance rice output in the study area.

Farmers also identified some key problems of rice

growing in the haor areas were higher input price,

unavailability of shorter growth duration variety, and

damaged flood control dams. On the other hand,

dredging of rivers and canals, construction of

embankment /sluice gate, reduced seasonal price

variation, short duration, high yielding and stress-

tolerant rice varieties, good communication,

accessibility of agricultural machinery like as power

tiller, irrigation gear, threshing machines, drying

machines, etc and forecasting early warning system may

facilitate to increasing rice production in Sylhet region.

This region's climate change scenario, particularly

floods, is a major threat to sustaining rice productivity

and livelihood year-round. A detailed and coordinated

action plan and successful implementation strategies

need to be implemented to ensure sustainable rice

production in the haor region. The following

recommendations are made based on the results to

improve rice production at haor.

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Md S. Rahaman, Md A.R. Sarkar, M. C. Rahman, L. Deb et al. Int J Agric Environ Food Sci 6 (3): 327-339 (2022)

▪ Government and other research institutions

should develop short-duration, high-yielding rice

varieties for the Boro season to avoid flash floods.

▪ Sustainable flood control measures should be

taken as early as possible, such as the embankment and

dredging of rivers and canals, etc.

▪ Because of the higher price, farmers cannot use

the inputs, i.e. seed, fertilizer, pesticides, etc. in

optimum quantities. The government will then take

suitable steps for the rice farmers to handle the necessary

▪ Ensure the availability and quality of seeds,

fertilizer, diesel, and electricity as well as irrigation

facilities at the beginning of the season.

▪ Extension service should be strengthened to

raise awareness of new technologies and crop calendars.

In addition to the government, the supply of farm

machinery should be strengthened, and their services

ensured timely.

▪ To reduce the sensitivity of the harvesting

process and the rapid transportation of rice from risky

low-lying lands, communication and transport as well as

the marketing system must be improved for haor areas;

and inputs for the rice production.

Compliance with Ethical Standards

Conflict of interest

The authors declared that for this research article, they have no actual, potential or perceived conflict of interest.

Author contribution

The contribution of the authors to the present study is equal.

All the authors read and approved the final manuscript. All the authors verify that the Text, Figures, and Tables are

original and that they have not been published before.

Ethical approval

Ethics committee approval is not required.

Funding

No financial support was received for this study.

Data availability

Not applicable.

Consent for publication

Not applicable.

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